Limited Liability Partnership Registration in Mumbai
Limited Liability Partnership is a corporate structure that contains the features of both partnership firms as well Company. Limited liability Partnership (LLP) was introduced in India under the Limited Liability partnership Act (2008). It is governed by the Limited liability partnership agreement between the partners. The main objective behind the introduction of limited liability partnership was to provide the flexibility of a partnership with the benefit of limited liability of a company.
Most significant advantage of limited liability partnership over the traditional partnership is limited liability of the partners towards Limited liability Partnership in Mumbai. Thus, one partner cannot be held liable for other partner’s act. A limited liability Partnership also provides the protection to the owners from the debts of the Limited Liability partnership. The personal assets of the partners cannot be utilized for discharging the liability of the firm.
Benefits of Limited Liability Partnership
Separate legal entity- Limited liability partnership has a distinct identity from its members. Thus, the partner’s personal assets cannot be utilized for discharging the liabilities of the limited liability partnership. Also Limited liability partnership can sue or can be sued on its own name.
Limited liability of member- The liabilities of the members of limited liability partnership are limited to the extent of the amount invested by them. Therefore, they cannot be held responsible for the acts of other partners.
Unlimited members- Minimum two members are required to incorporate a LLP. Whereas, there is no restriction on maximum numbers of members.
No requirement for minimum capital- Unlike companies the LLP can be formed with any amount of capital. Therefore there is no requirement for minimum capital.
Lower compliance and registration cost- The cost of formation and compliance is very less as compared other types of corporate structures.
Minimum Requirements for Incorporating a Limited Liability partnership in Mumbai
● Minimum 2 partners.
● Minimum 2 designated partners out which at least one should be Indian resident.
● DPIN (Designated partner identification number) for all partners.
● DSC (Digital signature certificate) for one of the designated partner.
Documents required for incorporating a Limited liability partnership in Mumbai are
● Self attested copy of PAN Card of all the partner
● Self attested copy of Address Proof of all the partners (Electricity bill/Gas bill/Telephone/mobile bill/Bank Statement)
● Property papers copy in case of owned property or Rent agreement copy in case of rented property
● Electricity/ water bill/Gas bill of registered office
● Statements by an Advocate/ CA/ CS/Cost Accountant in Practice that all requirements of LLP Act, 2008 and Rules made there under are complied with.
● Consent of Designated Partners/ Partners to act as such
Process for Incorporating a Limited Liability Partnership in Mumbai
Step 1: Acquire and Register DSC of all partners.
Step 2: Obtain Designated Partner Identification number (DPIN) of all the partners of Proposed LLP in form DIR-3
Step 3: Apply for reservation of name of LLP in E-form 1
Step 4: Filing of Incorporation Document and Subscribers’ Statement — Details of registered office, partners, etc has to be filed in E-form 2.
Step 5: Drafting and filing of LLP Agreement in form 3 within 30 days of incorporation of LLP.